Concerns about the impact of the Baltimore Bridge collapse on auto imports and exports are beginning to ease as auto companies look to other ports along the East Coast.
Market research firm Cox Automotive said Thursday that the situation in Baltimore is not expected to have a material impact on U.S. auto sales.
“Baltimore is a top port for auto shipments, but the potential for sudden new challenges to auto supply that could materially impact the market could present or create new problems,” Jonathan Smoak, chief economist at Cox, said in a conference call. is low.” “This port is heavy for imports and exports, but there are alternatives.”
Mercedes-Benz said it has already found other ways to handle the vehicles it normally imports from Germany via Baltimore.
“We have worked with our transportation partners to review our supply routes and adapt them as appropriate,” the company said in a statement. “We are confident that our vehicles will be delivered on time to our U.S. customers in April.”
The company added that in addition to Baltimore, it already uses ports in Charleston, South Carolina, and Brunswick, Georgia. Mercedes also said exports of vehicles manufactured in Tuscaloosa, Alabama, and shipments of parts to the plant will not be affected.
Most vehicles sold in the United States are assembled in North America. The impact is likely to be limited for European automakers that have relied on the Port of Baltimore, as many of their most popular models are produced there.
For example, BMW manufactures its sport utility vehicles in South Carolina. It imports sedans and sports cars from Germany, but sales numbers are lower than SUVs. Two exceptions are the BMW 3 Series and 4 Series sedans. But automakers must have enough inventory on dealer lots to keep sales going for a while.
As of the end of March, BMW had enough vehicles in its dealerships to last nearly 70 days at its current sales pace, which is slightly below the industry average, according to Cox Automotive.
Additionally, some of the Port of Baltimore's auto operations have not been shut down due to the bridge collapse. The TradePoint Atlantic Terminal, used by Volkswagen, is located at the mouth of the port, east of the Francis Scott Key Bridge, and remains accessible to ocean-going vessels.
Cars are transported on ships called roll-on/roll-off ships. These ships require specialized port and dock facilities. Imported cars also need to be processed at the port before being sent to the dealer. In some cases, additional equipment may be installed on the vehicle before it is loaded onto the truck or train.
Georgia's Port of Brunswick already handles hundreds of thousands of cars, trucks and other vehicles each year. The company's automotive facility, Colonel's Island Terminal, is located on more than 600 acres, with more than 400 acres of expandable area. Our ports in Charleston, Jacksonville, Florida, Newark, and Norfolk, Virginia also handle roll-on and roll-off vessels.